UK Chancellor Rachel Reeves has expressed cautious optimism about the global markets, citing signs that the punishing sell-off triggered by US trade tariffs is starting to ease. Speaking to parliament, she confirmed that markets are functioning effectively and the banking system is resilient, after discussing with Bank of England Governor Andrew Bailey.
Reeves also emphasized that a trade war “is in nobody’s interest” and reiterated her efforts to negotiate a new deal with the US. The UK will meet its international counterparts, including Canada, Australia, Ireland, France, Spain, and the European Commission, to reduce barriers to global trade.
Stock markets globally opened higher on Tuesday, driven by investor optimism after the US Treasury Secretary announced that he believed good deals could be reached with trading partners. The S&P 500 rose 3.3%, while the Dow Jones Industrial Average jumped 1,380 points.
Reeves declined to back “buy British” calls from the Liberal Democrats, stating that she doesn’t want a trade war making Britain inward-looking. Investors are hopeful for market stabilization as US-Japan trade talks offer a glimmer of hope.
Asian markets showed modest rebounds after Japanese stocks recovered by 5.6%, while Hong Kong’s Hang Seng index rose 1.6%. However, Taiwan’s benchmark fell 5% due to its heavy dependence on chip exports and a 32% duty imposed by the US.
The Chinese government vowed to take countermeasures if the US escalates the trade war, which has heightened uncertainty among investors in Asia. The European Commission had offered a “zero-for-zero” tariff deal weeks before Trump launched his trade war.
Source: https://www.theguardian.com/us-news/2025/apr/08/markets-trump-tariffs-ftse-100-us-trade